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Mining, Pollution and Agricultural Productivity: Evidence from Ghana

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Abstract

Most modern mines in the developing world are located in rural areas, where agriculture is the main source of livelihood. This creates the potential of negative spillovers to farmers through competition for key inputs (such as land) and environmental pollution. To explore this issue, we examine the case of gold mining in Ghana. Through the estimation of an agricultural production function using household level data, we find that mining has reduced agricultural productivity by almost 40%. This result is driven by polluting mines, not by input availability. Because of its crowding out effects on agriculture, we find that the mining activity is associated with an increase in poverty, child malnutrition and respiratory diseases. A simple cost-benefit analysis shows that the fiscal contribution of mining would not have been enough to compensate affected populations.

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  • Fernando Aragon & Juan Pablo Rud, 2012. "Mining, Pollution and Agricultural Productivity: Evidence from Ghana," Discussion Papers dp12-08, Department of Economics, Simon Fraser University.
  • Handle: RePEc:sfu:sfudps:dp12-08
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    Cited by:

    1. Fridtjof Bahlburg, 2023. "The Local Impact of Mining in Peruvian Districts: Evidence of a Subnational Resource Curse?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 264-286, July.
    2. Lawer, Eric Tamatey & Lukas, Martin C. & Jørgensen, Stig H., 2017. "The neglected role of local institutions in the ‘resource curse’ debate. Limestone mining in the Krobo region of Ghana," Resources Policy, Elsevier, vol. 54(C), pages 43-52.
    3. Wongnaa, Camillus Abawiera & Nti, Emmanuel Kwame & Acheampong, Patricia Pinamang & Bannor, Richard Kwasi & Babu, Suresh Chandra, 2021. "The Shift from Crop Production to Mining Activities in Arable Lands: Evidence from Ghana," 2021 Conference, August 17-31, 2021, Virtual 314946, International Association of Agricultural Economists.
    4. Marcel Fafchamps & Michael Koelle & Forhad Shilpi, 2017. "Gold mining and proto-urbanization: recent evidence from Ghana," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 975-1008.
    5. Manuel Pérez Trujillo & Gabriel O. Rodríguez Puello, 2022. "Economic shocks and their effect on the schooling and labor participation of youth: evidence from the metal mining price boom in Chilean counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 65-93, February.
    6. Frederick Armah & Isaac Luginaah & Justice Odoi, 2013. "Artisanal small-scale mining and mercury pollution in Ghana: a critical examination of a messy minerals and gold mining policy," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 3(4), pages 381-390, December.
    7. Alexander B. Lippert, 2014. "Spill-Overs of a Resource Boom: Evidence from Zambian Copper Mines," OxCarre Working Papers 131, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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    More about this item

    Keywords

    Natural resources; Mining; Pollution;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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